Algorithms, particularly in the form of artificial intelligence and machine learning, are proliferating in finance and changing how we make decisions. Algorithms have been around for a while in the ...

The original version of this story appeared in Quanta Magazine. Imagine a town with two widget merchants. Customers prefer cheaper widgets, so the merchants must compete to set the lowest price.

Companies are increasingly using pricing algorithms and other AI systems to develop and improve their ability to promptly respond to market conditions, innovate product offerings, and set prices.